Correlation Between Guangzhou Dongfang and SUNSEA Telecommunicatio
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangzhou Dongfang Hotel and SUNSEA Telecommunications Co, you can compare the effects of market volatilities on Guangzhou Dongfang and SUNSEA Telecommunicatio and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Guangzhou Dongfang with a short position of SUNSEA Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Dongfang and SUNSEA Telecommunicatio.
Diversification Opportunities for Guangzhou Dongfang and SUNSEA Telecommunicatio
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and SUNSEA is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Dongfang Hotel and SUNSEA Telecommunications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUNSEA Telecommunicatio and Guangzhou Dongfang is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Guangzhou Dongfang Hotel are associated (or correlated) with SUNSEA Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUNSEA Telecommunicatio has no effect on the direction of Guangzhou Dongfang i.e., Guangzhou Dongfang and SUNSEA Telecommunicatio go up and down completely randomly.
Pair Corralation between Guangzhou Dongfang and SUNSEA Telecommunicatio
Assuming the 90 days trading horizon Guangzhou Dongfang Hotel is expected to generate 0.5 times more return on investment than SUNSEA Telecommunicatio. However, Guangzhou Dongfang Hotel is 1.98 times less risky than SUNSEA Telecommunicatio. It trades about -0.03 of its potential returns per unit of risk. SUNSEA Telecommunications Co is currently generating about -0.12 per unit of risk. If you would invest 1,012 in Guangzhou Dongfang Hotel on August 29, 2024 and sell it today you would lose (14.00) from holding Guangzhou Dongfang Hotel or give up 1.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Dongfang Hotel vs. SUNSEA Telecommunications Co
Performance |
| Timeline |
| Guangzhou Dongfang Hotel |
| SUNSEA Telecommunicatio |
Guangzhou Dongfang and SUNSEA Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Dongfang and SUNSEA Telecommunicatio
The main advantage of trading using opposite Guangzhou Dongfang and SUNSEA Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Dongfang position performs unexpectedly, SUNSEA Telecommunicatio can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in SUNSEA Telecommunicatio will offset losses from the drop in SUNSEA Telecommunicatio's long position.| Guangzhou Dongfang vs. Agricultural Bank of | Guangzhou Dongfang vs. Industrial and Commercial | Guangzhou Dongfang vs. Bank of China | Guangzhou Dongfang vs. China Construction Bank |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |